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EUR/USD softer near 1.2620

FXStreet (Edinburgh) - The single currency remains on the back footing at the end of the week, taking EUR/USD back to the 1.2630 area.

EUR/USD ignores EMU’s data

Spot continues to correct lower after being rejected from the 1.2700 neighbourhood on Thursday, after the neutral tone from Draghi served as a catalyst for the bull run. Today, the pre-NFP lull has taken over the sentiment since early trade, and the EUR haven’t even reacted to the very auspicious results from retail sales in the euro area, surprising markets to the upside and expanding 1.2% inter-month and 1.9% on a yearly basis. In light of the scepticism surrounding the recent ECB statement, analyst Derek Halpenny at BTMU noted “while we see some scope for a euro correction given the extreme negative sentiment and positioning, any rebound is likely to be pretty shallow and brief”.

EUR/USD levels to watch

At the moment the pair is retreating 0.33% at 1.2625 and the immediate support lines up at 1.2571 (2014 low Sep.30) followed by 1.2561 (low Sep.6 2012) and then 1.2502 (76.4% of 1.2042-1.3995). On the upside, a breakout of 1.2699 (high Oct.2) would open the door to 1.2715 (high Sep.29) and finally 1.2718 (10-d MA).

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